Ivanhoé Cambridge continues to develop its U.S. office portfolio by announcing an investment in California’s Silicon Valley region through the acquisition of 73 office buildings in partnership with affiliates of TPG and DivcoWest, who jointly led the transaction which closed in late December 2012.
This opportunistic investment provides the partners with immediate access to 6.4 million square feet of leasable space with a very attractive potential long-term return.
“This investment of more than $US 400 million enables us to acquire a critical mass of assets in a rental market that is seeing one of the best growth rates in the United States,” said Ivanhoé Cambridge’s president of global investments, Bill Tresham. “We look forward to working with our experienced partners, TPG and DivcoWest, to increase the value of the office and R&D properties through additional investments and through strong asset management committed to meeting tenant needs.”
The properties were part of a portfolio sold by Mission West Properties, Inc., a publicly-traded REIT. All the buildings are located in Silicon Valley, California, which boasts a large concentration of high-tech firms and has among the fastest employment growth rates in the United States.
Avi Banyasz, partner at TPG, said, “We are excited about the opportunity to work with Ivanhoé Cambridge and DivcoWest to maximize the value of our partnership, M West Properties.”
“We feel very fortunate to have partners like Ivanhoé Cambridge and TPG in this investment,” said DivcoWest CEO, Stuart Shiff. “The collective talent at the table for this portfolio will bring out the absolute best value for our investors and tenants in the months and years to come.”